KEY POINTS:
Investors in OPI Pacific Finance should finally know this week the details of how and when they will get their money back from the financially troubled firm.
Some 12,000 investors with $300 million tied up in the firm formerly known as MFS Pacific Finance have been waiting since February to find out the details of a promised moratorium proposal.
Yesterday the company said it had provided its trustee and advisers with a draft moratorium proposal and expected to release the details this week to allow it to hold a meeting to vote on the proposal on May 19.
The firm must meet a May deadline to gain access to a A$20 million ($23.96 million) lump sum put aside by Octaviar (formerly MFS) as part of the Australian company's put option agreement with Pacific Finance.
The money will go to other creditors if the date is not met or an extension date agreed to.
Pacific Finance had been waiting to finalise a future funding arrangement with Octaviar which it said was vital to the success of its moratorium proposal.
Yesterday OPI New Zealand, the parent company of Pacific Finance which is 38.5 per cent owned by Octaviar, said negotiations were still under way between Octaviar and Pacific Finance but they had "sufficiently advanced" to a point where the moratorium proposal could proceed.
"Octaviar is still negotiating with Pacific Finance and its other large unsecured creditors in relation to it reaching accommodation with them in respect of its indebtedness. However, the directors of Pacific Finance do not consider that the finalisation of that process is necessary in order for the moratorium proposal to proceed."
Octaviar, which itself has been in financial trouble, released an interim financial report on Monday showing it had put aside the A$20 million for Pacific Finance to be used as an initial payment.
It has also made provision for impaired assets of A$246 million for Pacific Finance should the company call on the put option to cover all of its debts including $245.8 million owed to debenture holders and $54.4 million owed to noteholders.
OPI New Zealand said it was not able to provide exact figures of how much investors could hope to receive back until a prospectus was released as part of the moratorium but it hoped to get enough money from the realisation of its loans and assets to match the A$246 million
Octaviar has also signalled that it may have to write down the A$86 million value of its New Zealand investment advisory Vestar to zero.
